Facebook shares rebound on Thursday, Guggenheim upgrades stock to “Buy”, revises up price target

April 5, 2019 7:10 am

Guggenheim on Thursday upgraded Facebook Inc (FB) from “Neutral” to “Buy”, while stating that shareholders of the company are getting more used to data leaks or privacy concerns.

The firm also revised up its price target on the stock from $175 to $200.

Facebook shares closed higher for the sixth time in the past ten trading sessions on NASDAQ on Thursday. The stock went up 1.43% ($2.48) to $176.02, after touching an intraday high at $178.02, or a price level not seen since August 30th 2018 ($179.79).

Shares of Facebook Inc have risen 34.27% so far in 2019 compared with a 14.86% gain for the benchmark index, S&P 500 (SPX).

In 2018, Facebook Inc’s stock went down 25.71%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

“Investors will continue to gain comfort with the incremental financial risk created by content and privacy concerns,” Guggenheim analyst Michael Morris wrote in a client note, cited by CNBC.

Morris believes there is “potential for commerce and messaging monetization opportunities as attractively priced within shares.”

On the other hand, there could be key limitations to short-term growth, mostly regarding Facebook’s video content.

“We still view the company’s video strategy as un-developed and see the economic opportunity as limited without uniquely recognizable content and a presence on the television screen to complement the mobile experience,” the analyst noted.

According to CNN Money, the 41 analysts, offering 12-month forecasts regarding Facebook Inc’s stock price, have a median target of $200.00, with a high estimate of $275.00 and a low estimate of $120.00. The median estimate represents a 13.62% upside compared to the closing price of $176.02 on April 4th.

The same media also reported that 35 out of 49 surveyed investment analysts had rated Facebook Inc’s stock as “Buy”, while 8 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Facebook Inc (FB) are presented as follows:

Central Pivot Point – $166.05
R1 – $170.09
R2 – $173.50
R3 – $177.54
R4 – $181.59

S1 – $162.64
S2 – $158.60
S3 – $155.19
S4 – $151.79

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